This U.S. PE Firm Is Going Big In UK Real Estate With New £350M Deal

U.S. private equity firm Sixth Street has closed a £350M industrial acquisition, the latest in a series of UK real estate deals.

Sixth Street has recapitalised a 37-asset, multilet industrial portfolio owned by Clipstone Industrial REIT, which is listed on the International Stock Exchange.

The two parties have also formed a joint venture, C6, which will look to buy other multilet industrial assets.

Sixth Street will provide the majority of the equity capital, and Clipstone will continue to manage the portfolio, the duo said.

The portfolio totals 1.7M SF with around 40% located in the London and M25 area, with the balance across the south-east.

The properties are in strong occupational markets, including Enfield, Hanworth, Sutton, Chessington, Welwyn, Bracknell, Reading, Newbury and Stansted Airport.

Sixth Street’s roots are in private equity, and it has a track record of investing in major sports teams. It is part of an investment group that recently bought the Boston Celtics basketball team at one of the highest valuations ever placed on a sports team.

But it has made a heavy play for UK property. A year ago, it teamed up with Patron Capital to buy housebuilder Cala from Legal & General for £1.35B. And in March, it bought three UK logistics assets with sector specialist Copley Point.

It was also part of a joint venture with Blackstone that bid for £470M listed company Warehouse REIT, but Blackstone has now completed that deal on its own.

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